Russia is increasingly applying more detailed regulations in the Cryptocurrency field. In August, President Vladimir Putin legalized Cryptocurrency mining activities. Since then, the country has introduced new regulations to align mining activities with national energy demands.
The recent additional rules include both complete bans and seasonal restrictions, which are expected to take effect from the beginning of next year.
The Russian Government Approves a List of Regions Banned from Cryptocurrency Mining
According to TASS, Russia's leading state news agency, reports that Russia plans to ban Cryptocurrency mining for six years from January 1, 2025 to March 15, 2031 in 10 regions. These regions include Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, Donetsk, Lugansk, Zaporizhzhia and Kherson.
In some areas like Irkutsk, Buryatia and the Trans-Baikal region, Russia will restrict mining activities instead of imposing a complete ban. These regions will suspend mining activities from January 1 to March 15, 2025, and from November 15 to March 15 in the following years.
TASS emphasized that the government does not consider the list of banned and restricted regions as fixed and may adjust it based on decisions from the legal committee managing energy sector development. The government aims to maintain a balanced energy consumption level through these new regulations.
"This is the so-called inter-regional symmetry, where low electricity costs in regions with adjusted contracts are effectively offset by producers and consumers in other regions. After liberalizing the market in this area, these restrictions may be lifted, provided there is sufficient capacity," Sergei Kolobanov, Deputy Director of the Fuel and Energy Complex Economics Center at the CSR, told TASS.
According to data from the University of Cambridge, Bitcoin mining in Russia accounts for 4.7% of the global hashrate, down from 11% in August 2021. Meanwhile, Miners in the United States hold the largest share at 37.8% of the global hashrate.
The Cambridge data also shows that the monthly average hashrate of Russian Miners has decreased from 13.6 Eh/s to 8.7 Eh/s. Although Russia has legalized mining, this development has not significantly stimulated growth in mining activities in the country.
However, in 2024, the Russian government has shown a more open stance towards Cryptocurrencies, including allowing cross-border Cryptocurrency payments and preparing to launch state-backed Cryptocurrency exchanges. Additionally, Russian lawmakers have proposed holding Bitcoin reserves to enhance financial stability.
